A Dividend Aristocrat stock refers to the stock of a company that has increased its dividend annually for at least the past 25 years. These stocks often have higher-than-average dividend yields. While the average dividend yield for a member of the Standard & Poor's 500 Index is 1.9%, Coca-Cola's dividend yield is 2.8%. Exxon Mobil's 2.6% and Wal-Mart's 2.4%.

What is virtually guaranteed for these dividends is that the amount will increase annually, as it has for more than a quarter of a century.

When a publicly traded company increases its dividend annually for over two decades, bankruptcy isn't a concern.

Paying a dividend is a sign of strength as a company's board decides it is in the best interest of the business to share earnings with all of the owners, no matter how thin the slice of equity.

To increase a dividend annually for a quarter of a century is remarkable considering that the past 25 years have included the Great Recession, two other recessions, a housing bubble, a tech bubble, wars and an terrorist attack on the United States.

If the tax-free income of a municipal bond is alluring, then simply buy the Dividend Aristocrat stock for a tax-protected account such as an individual retirement account or 401(k) and receive the same benefit.

The recent court ruling allowing the Chapter 9 filing will most likely be challenged, but it is likely to be upheld. For municipal bond owners, the truly pernicious aspect of the Detroit bankruptcy is that a road map has now been provided for others in how to default.

By contrast, shareholders of Dividend Aristocrat stocks can look forward to their dividend income growing annually as it has for decades. Small wonder that Warren Buffett is a major shareholder of Coca-Cola, Exxon Mobil, and Wal-Mart. Those owning bonds from Detroit and other U.S. cities are surely wishing they were, too.

At the time of publication, the author had no position in any of the stocks mentioned.

This article was written by an independent contributor, separate from TheStreet's regular news coverage.

Jonathan Yates is a financial writer who has had thousands of articles appear in periodicals and Web sites such as TheStreet, Newsweek, The Washington Post and many others. Much of his career was spent working on Capitol Hill for Members of Congress in both the House and Senate, on both committee and personal staff. He was also General Counsel for a publicly traded corporation. He has degrees from Harvard University, Georgetown University Law Center and The Johns Hopkins University.